# Methodology — sponsor_bank_ppp_pnl.csv

**Source of record.** FDIC BankFind Suite financial API (`banks.data.fdic.gov/api/financials`),
the FDIC's machine-readable republication of quarterly FFIEC Call Report (FFIEC 031/041)
data. The assignment permits "FFIEC CDR bulk data or FDIC BankFind API"; the API was
used because it exposes the PPP-specific call-report memoranda directly and is
join-ready. The underlying primary filings are the banks' Call Reports, available at
the FFIEC Central Data Repository (cdr.ffiec.gov) by CERT/RSSD if a true source PDF is
later required.

**Population.** Three sponsor banks × 13 quarters, 2019Q4 (pre-PPP baseline) → 2022Q4:
- Cross River Bank — FDIC CERT 58410
- Celtic Bank — FDIC CERT 57056
- Customers Bank — FDIC CERT 34444

**Query.** One call per bank, `filters=CERT:<cert> AND REPDTE:[20191231 TO 20221231]`.
Raw JSON responses are archived in `fdic-api-raw/`; the cleaned long table is
`analysis/sponsor_bank_ppp_pnl.csv`.

## Field definitions (all dollar fields in **$thousands**, FDIC convention)
| CSV column | FDIC field | Meaning |
|---|---|---|
| total_assets_000 | ASSET | Total assets |
| equity_000 | EQ | Total equity capital |
| deposits_000 | DEP | Total deposits |
| net_loans_leases_000 | LNLSNET | Net loans and leases |
| total_interest_income_000 | INTINC | Total interest income (**includes amortized PPP fees**) |
| noninterest_income_000 | NONII | Total noninterest income |
| net_income_000 | NETINC | Net income (quarterly, as reported) |
| yield_on_earning_assets_pct | INTINCY | Yield on earning assets (%) |
| net_interest_margin_pct | NIMY | Net interest margin (%) |
| roa_pct / roe_pct | ROA / ROE | Return on assets / equity (%) |
| provision_loan_loss_000 | ELNATR | Provision for loan/lease losses |
| ppp_loans_num | PPPLNNUM | Number of PPP loans (Call Report Sch. RC-M) |
| ppp_loans_balance_000 | PPPLNBAL | Outstanding balance of PPP loans |
| ppp_loans_pledged_to_ppplf_000 | PPPLNPLG | PPP loans pledged to the PPPLF |

## Caveats (editorial-stance relevant)
1. **No standalone PPP fee line.** SBA PPP processing fees are recognized as an
   adjustment to yield and amortized into **interest income (INTINC)** over the loan's
   life (accelerating on forgiveness/prepayment). The PPP-fee contribution is therefore
   *embedded*, not separately disclosed. Net-income swings are presented as
   PPP-*associated*, evidenced by the timing alignment with the PPP balance run-off —
   not as a claim that 100% of the delta is PPP fees. This is a verified-original-document
   inference, consistent with the project's negative-inference-against-lenders stance:
   the surge is shown from the banks' own regulatory filings, not from PR.
2. **Bank-level, not PPP-level.** All non-PPP-prefixed fields are whole-bank totals.
3. **PPPLNNUM can exceed a bank's own originations** where the bank served as the
   balance-sheet/sponsor lender for fintech partners (e.g. Cross River's count spikes
   to 554,708 in 2021Q2). Treat counts as "PPP loans on/through the bank," not
   "loans the bank itself marketed."
4. **⚠ Income fields are YEAR-TO-DATE, not quarterly.** FDIC/FFIEC income-statement fields
   (`total_interest_income`, `noninterest_income`, `net_income`, `provision_loan_loss`) are
   **cumulative within each calendar year** and reset each Q1 (verified: values rise Q1→Q4
   monotonically; the one exception, Cross River 2022, is a genuine Q4 net loss). Therefore a
   "Q4" income value **is the full-year figure**, and the right comparison is annual:
   Cross River **FY2019 $42.8M → FY2021 $372.0M (≈8.7×)**; Customers **FY2019 $83.4M →
   FY2021 $321.8M (≈3.9×)**. To get a single quarter, difference consecutive YTD values.
   **Balance-sheet** fields (assets, equity, deposits, net loans, `ppp_loans_balance`,
   `ppp_loans_pledged_to_ppplf`) are point-in-time and need no adjustment. 2019Q4 = clean
   pre-program (full-year 2019) baseline.
5. **Disclosed PPP fee figure (Customers only).** The PPP fee income that the call report
   cannot isolate is disclosed in Customers Bancorp's 10-Ks: $65.5M (FY2020), $279.2M (FY2021)
   of PPP interest income incl. origination fees. See
   `analysis/customers_bancorp_ppp_income_disclosed.csv`. Cross River and Celtic are private —
   no equivalent disclosure exists.